Ausdrill (ASL)

Mining services companies have come back into favour as major miners begin to commit to capital expenditure programs after a significant uptick in resource prices, and
Ausdrill
is no exception - with its shares having more than doubled since the start of this financial year.

But an impetus to build scale is leading to consolidation in the sector, and last week Ausdrill announced the structure of its tie-up with smaller competitor Brandrill. New Ausdrill shares were issued on a deferred settlement basis on Monday.

Brandrill will officially leave the sharemarket on December 17, while new Ausdrill shares begin trading on a normal settlement basis from December 18.

Last year Macmahon Holdings made an unsuccessful $500 million bid for Ausdrill.